YAHOO [BRIEFING.COM]: Stocks spiked to a gain of more than 1% following a better-than-expected consumer confidence reading, but the major indices quickly faltered to settle the session with modest gains. Though that made for an unimpressive finish, the gain helped stocks register a new closing high for 2009.

The major indices hit session highs in the moments following the Consumer Confidence Index for August, which came in at 54.1. That was above the 47.9 that was widely expected and marked an improvement from the upwardly revised July reading of 47.4. However, market participants should remember that consumer confidence is not highly correlated with actual spending.

Despite that consideration, retailers showed steady strength through the entire session. They finished 1.8% higher, led by Big Lots (BIG 25.60, +1.57). The discount retailer reported better-than-expected earnings. Chico's FAS (CHS 12.79, +0.90) also provided support with its own positive earnings surprise. The strength behind retailers helped the consumer discretionary sector finish 1.2% higher, the best of the major sectors in the S&P 500.

In other earnings news, Medtronic (MDT 37.86, -0.14) spent the entire session chopping along in negative territory despite posting in-line quarterly earnings. That detracted from the tech sector, which finished just 0.1% higher.

Financial stocks were a primary source of support to the broader market, though. They led gains for virtually the entire session before settling with a 1.1% gain. Bank stocks and shares of insurers underpinned the sector's strength.

Separately, Ben Bernanke has been nominated to a second term as Chairman of the Federal Reserve. His nomination comes as the U.S. economy continues to contend with considerable macro headwinds.DJ30 +30.01 NASDAQ +6.25 NQ100 +0.3% R2K +0.5% SP400 +0.5% SP500 +5.43 NASDAQ Adv/Vol/Dec 1458/1.95 bln/1244 NYSE Adv/Vol/Dec 1830/1.30 bln/1185